Australia Cracks Down on Crypto ATMs as Scams Surge

Australia’s financial intelligence agency, AUSTRAC, has introduced stringent regulations for cryptocurrency ATM operators to curb a sharp rise in scams, with federal police reporting losses exceeding 3.1 million Australian dollars ($2 million) in a single year.

The new rules, effective immediately, aim to protect vulnerable users, particularly older Australians, and prevent criminal exploitation of the rapidly growing crypto ATM network.

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New Rules to Safeguard Users

AUSTRAC’s regulations impose a 5,000 Australian dollar ($3,250) limit on cash deposits and withdrawals at crypto ATMs. Operators must now display prominent scam warning signs, enhance transaction monitoring, and strengthen customer due diligence processes. While these limits currently apply only to ATM providers, AUSTRAC has urged crypto exchanges accepting cash to consider similar restrictions.

AUSTRAC CEO Brendan Thomas emphasized that the measures are designed to deter criminals and protect businesses, with ongoing reviews to ensure their effectiveness. “These conditions help shield individuals from scams and reduce the misuse of crypto ATMs,” Thomas stated.

Did You Know?
Australia’s crypto ATM network has grown exponentially, from 67 machines in August 2022 to 1,819 as of June 2025, making it the world’s third-largest hub behind the United States and Canada.

Scams Targeting Older Australians

An AUSTRAC task force, established in September 2024, revealed that users over 50 account for nearly 72% of crypto ATM transactions by value, with many in the 60-70 age group falling victim to scams. The agency reported approximately 150,000 annual transactions, totaling $275 million, primarily involving Bitcoin ($105,244), Tether ($1.00), and Ether ($2,614).

The Australian Federal Police (AFP) noted 150 scam reports via ReportCyber from January 2024 to January 2025, with losses likely underreported due to victims’ embarrassment or lack of awareness. AFP Commander Graeme Marshall urged victims to share their experiences to raise awareness and prevent further incidents.